Is Sahaj Fashions overvalued or undervalued?

As of 16 September 2025, the valuation grade for Sahaj Fashions has moved from risky to does not qualify, indicating a significant deterioration in its investment appeal. The company appears to be undervalued, with a PE Ratio of 10.47, an EV to EBITDA of 7.48, and an EV to Sales ratio of 0.37. These figures suggest that the stock is trading at a discount compared to its earnings and sales potential.
In comparison to its peers, Sahaj Fashions' valuation metrics are considerably lower than those of K P R Mill Ltd, which has a PE Ratio of 45, and Trident, with a PE Ratio of 34.64. This stark contrast highlights Sahaj Fashions' relative undervaluation within the garments and apparel industry. Moreover, the company's recent stock performance has been poor, with a year-to-date return of -42.81%, significantly underperforming the Sensex, which has gained 6.74% in the same period.